Centric Brands (NASDAQ:CTRC) and Sequential Brands Group (NASDAQ:SQBG) are both small-cap retail/wholesale companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, institutional ownership, earnings and profitability.
Earnings and Valuation
This table compares Centric Brands and Sequential Brands Group’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Centric Brands||$164.05 million||0.45||-$2.45 million||($0.94)||-5.61|
|Sequential Brands Group||$167.46 million||0.37||-$185.71 million||$0.44||2.16|
This is a breakdown of current ratings and recommmendations for Centric Brands and Sequential Brands Group, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Sequential Brands Group||0||2||0||0||2.00|
Sequential Brands Group has a consensus price target of $2.00, suggesting a potential upside of 110.30%. Given Sequential Brands Group’s higher probable upside, analysts clearly believe Sequential Brands Group is more favorable than Centric Brands.
Volatility and Risk
Centric Brands has a beta of -2.13, indicating that its stock price is 313% less volatile than the S&P 500. Comparatively, Sequential Brands Group has a beta of 0.15, indicating that its stock price is 85% less volatile than the S&P 500.
This table compares Centric Brands and Sequential Brands Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Sequential Brands Group||-101.91%||6.02%||1.95%|
Insider and Institutional Ownership
7.6% of Centric Brands shares are owned by institutional investors. Comparatively, 44.4% of Sequential Brands Group shares are owned by institutional investors. 54.8% of Centric Brands shares are owned by company insiders. Comparatively, 29.8% of Sequential Brands Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Sequential Brands Group beats Centric Brands on 8 of the 12 factors compared between the two stocks.
About Centric Brands
Centric Brands Inc. engages in the design, development, sale, and licensing of apparel products and accessories under the Robert Graham brand name worldwide. The company operates through Wholesale and Consumer Direct segments. Its product line includes men's sport shirts, knits, sweaters, polos, T-shirts, denim jeans, bottoms, shorts, sport coats, outerwear, and swimwear; shoes, belts, small leather goods, dress shirts, neckwear, tailored clothing, headwear, eye and sun glasses, jewelry, hosiery, underwear, loungewear, and fragrances for men that are produced through third parties under various license agreements; and women's apparel. The company also offers denim jeans, bottoms, tops, jackets, and other related apparel and accessories for women, men, and children under the Hudson brand name; and footwear and apparel products and accessories under the SWIMS brand name, as well as licenses Hudson children's products. It sells its products through 30 Robert Graham brand full-price retail stores and outlet stores; Robert Graham catalogs; and 2 SWIMS brand outlet stores, as well as online through hudsonjeans.com, robertgraham.us, and swims.com Websites. The company was formerly known as Differential Brands Group Inc. and changed its name to Centric Brands Inc. in October 2018. Centric Brands Inc. was founded in 1987 and is based in New York, New York.
About Sequential Brands Group
Sequential Brands Group, Inc. owns, promotes, markets, and licenses a portfolio of consumer brands in the United States and internationally. It offers products in the apparel, footwear, eyewear, fashion accessories, and home goods categories under the Jessica Simpson, AND1, Avia, GAIAM, Joe's Jeans, Ellen Tracy, Emeril Lagasse, William Rast, Heelys, Revo, Caribbean Joe, DVS, The Franklin Mint, Linens N Things, SPRI, Nevados, and FUL brand names; and food, wine, magazines, books, and other print and digital content categories under the Martha Stewart brand name. The company licenses its brands through various distribution channels to retailers, wholesalers, and distributors. Sequential Brands Group, Inc. was incorporated in 1982 and is headquartered in New York, New York.
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